Forecast for the summer real estate market
It’s almost summer, and the forecast for the real estate market is “Sunny”!
Home sales are up! On this week’s show, we talked to NAR Chief Economist Lawrence Yun about the numbers that seem to indicate the market is starting come back.
He says the biggest indicator is that current homeowners are turning into repeat buyers, which means people who own homes are putting them on the market, selling them, and buying new homes. Others are buying second homes. And still others are investing! It’s great, because it means we’re starting to see the beginning of a return to how a normal market operates.
While almost half of the sales we saw in April were “distressed sales” (meaning foreclosures or short sales), that number has actually dropped from March — another indicator that we’re starting to see more normalcy.
And now that we have incentives for first time home buyers, things will likely only get better!
Yun says we have not begun to see the impact that the new credits and incentives will have on the market, since the process of buying a home typically takes three to five months, and the new federal tax credit was only passed in February — this means that we’ll likely see a spike in first time buyers starting sometime in late June.
Do you have questions about the latest incentives for homebuyers? Drop us a comment!
